SBI Life Insurance Co Ltd, which plans to infuse Rs 400 crore capital this fiscal, will launch a clutch of innovative Group Credit Protection products that will cover all retail loans offered by the banks, company Deputy CEO Pier-Paolo Dipaola disclosed here on Tuesday.
“These products cover borrowers to the extent of the loan availed of, subject to a maximum of Rs 10,000 cover,without having a maximum cover limit,” Mr Dipaola said.
Features
The new products will be launched under Dhanaraksha Plus series in the end of this month. He said that the SBI Life was aiming to touch Rs 6,000 crore premium income in the current financial year.
He added that the main feature of the new products was the provision of reducing term cover to the borrowers of a variety of loans such as home loan, vehicle loan and personal loans through a group insurance policy with the lending institution.
Contribution
  To a question, Mr Dipaola refused to divulge the categories in which these traditional yet new products will be launched. “Like home loan protection products that alone contributed more than Rs 225 crore of news business premium income last year, the new products are likely to contribute Rs 500 crore of new premium income this financial year,” he claimed.
“Aim is to have a broader retail base as the existing products are gradually phased out,” he explained. In SBI Life, a joint venture between State Bank of India and BNP Paribas company Cardiff, SBI owns 74 per cent of the total capital.